Lower stocks boost canola futures

WINNIPEG, (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished stronger on Friday, bouncing back from previous lows following the World Agriculture Supply Demand Estimates (WASDE) from the United States Department of Agriculture (USDA).

The WASDE reported projected ending stocks— including Malaysian palm oil, European rapeseed, and canola—to be the lowest level in 40 years. That was supportive for canola prices.

Canola values were also supported by a relatively weaker Canadian dollar, which was around 75.6 U.S. cents at midday. The dollar has dropped by about a tenth of a cent over the past week.

On Friday, 20,680 contracts were traded, which compares with Thursday when 13,784 contracts changed hands. Spreading accounted for 13,040 contracts traded.

SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Friday. Though experts were anticipating soybean production to be revised slightly downward in the World Agriculture Supply Demand Estimates (WASDE) from the United States Department of Agriculture (USDA), others expected production numbers to be bearish, in line with previous forecasted trends.

In the end, soybean production estimates were unchanged in the November report, at 46.9 bushels per acre for a total of 3.55 billion bushels. World soybean carryout was higher than what analysts anticipated, which also weighed on soybean values. Estimated carryout was up by 2.2 million tonnes from last month’s projection, at 95.42 million tonnes. Total production for soybeans remained at 3.55 billion bushels.

A private export sale for 270,000 tonnes of soybeans was announced this morning, purchased by an unknown destination.

CORN futures were stronger today, following revised corn yield estimates. The expected yield was lowered from 168.4 bushels per acre to 167 bushels per acre, which was in line with trade expectations. Challenging growing conditions in the Corn Belt were to blame for the reduced estimates, but the USDA still expects harvested corn acres to total 81.8 million.

Total corn production is expected to be 13.661 billion bushels, down from the 13.779 billion bushels predicted earlier.

WHEAT futures were lower on Friday, despite lowered harvested acres reported in the WASDE. Harvested acres were cut by nearly one million following a re-survey, mainly due to the large amounts of snow that fell in Montana and North Dakota in October. Wheat production estimates were lowered to 1.920 billion bushels, from 1.962 billion bushels. Carryout for wheat was decreased as well, from 1.043 billion bushels last month to 1.014 billion bushels this month.

OUTSIDE MARKETS

Light crude oil nearby futures in New York was up nine cents at US$57.24 per barrel.

In the afternoon, the Canadian dollar was trading around US75.63 cents, down from 75.90 centsthe previous trading day. The U.S. dollar was C$1.3223.

Winnipeg ICE Futures Canada dollars per tonne.

Canola Nov 19  456.80s  +2.10  +0.46%

Canola Jan 20  463.30s  +2.10  +0.46%

Canola Mar 20  472.90s  +2.40  +0.51%

Canola May 20  481.20s  +2.00  +0.42%

Canola Jul 20  488.40s  +1.80  +0.37%

 

American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound. Prices are displayed with fractions (2/8, 4/8, and 6/8) instead of decimals. -2 equals .25, -4 equals .50, -6 equals .75. The “s” means it is the settlement.

Chicago

Soybean Nov 19  919-4s  -5-4  -0.59%

Soybean Jan 20  931-0s  -5-4  -0.59%

Soybean Mar 20  944-0s  -4-6  -0.50%

Soybean May 20  955-4s  -4-6  -0.49%

Soybean Jul 20  966-0s  -4-6  -0.49%

 

Soybean Meal Dec 19  304.9s  -0.7  -0.23%

Soybean Meal Jan 20  307.0s  -0.8  -0.26%

Soybean Meal Mar 20  309.8s  -1.2  -0.39%

 

Soybean Oil Dec 19  31.50s  +0.07  +0.22%

Soybean Oil Jan 20  31.71s  +0.06  +0.19%

Soybean Oil Mar 20  31.98s  +0.07  +0.22%

 

Corn Dec 19  377-2s  +2-0  +0.53%

Corn Mar 20  386-4s  +2-6  +0.72%

Corn May 20  393-4s  +2-4  +0.64%

Corn Jul 20  399-6s  +2-0  +0.50%

Corn Sep 20  396-2s  +1-4  +0.38%

 

Oats Dec 19  304-2s  -1-0  -0.33%

Oats Mar 20  299-6s  unch  unch

Oats May 20  300-0s  +0-4  +0.17%

Oats Jul 20  297-4s  +0-2  +0.08%

Oats Sep 20  288-2s  +0-2  +0.09%

 

Wheat Dec 19  510-2s  -2-2  -0.44%

Wheat Mar 20  514-2s  -3-0  -0.58%

Wheat May 20  519-6s  -2-4  -0.48%

Wheat Jul 20  524-0s  -2-4  -0.47%

Wheat Sep 20  531-4s  -1-6  -0.33%

Minneapolis

Spring Wheat Dec 19  518-4s  -0-2  -0.05%

Spring Wheat Mar 20  535-0s  -0-2  -0.05%

Spring Wheat May 20  545-2s  -0-4  -0.09%

Spring Wheat Jul 20  554-4s  unch  unch

Spring Wheat Sep 20  562-4s  -0-2  -0.04%

 

Kansas City

Hard Red Wheat Dec 19  421-4s  -3-2  -0.77%

Hard Red Wheat Mar 20  430-4s  -3-0  -0.69%

Hard Red Wheat May 20  438-2s  -2-4  -0.57%

Hard Red Wheat Jul 20  445-4s  -2-2  -0.50%

Hard Red Wheat Sep 20  454-0s  -2-2  -0.49%

 

Chicago livestock futures in US¢/pound, Pit trade

Live Cattle Dec 19  119.250s  +0.250  +0.21%

Live Cattle Feb 20  125.025s  +0.175  +0.14%

Live Cattle Apr 20  126.100s  +0.250  +0.20%

 

Feeder Cattle Nov 19  147.000s  +0.225  +0.15%

Feeder Cattle Jan 20  145.875s  +0.100  +0.07%

Feeder Cattle Mar 20  145.500s  unch  unch

 

Lean Hogs Dec 19  64.125s  -0.175  -0.27%

Lean Hogs Feb 20  73.900s  +0.125  +0.17%

Lean Hogs Apr 20  80.325s  +0.175  +0.22%

 

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